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Flybe nosedives on profits warning


Andy Onchan

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Open Skies baby! 

http://www.tynwald.org.im/business/pp/Reports/2013-PP-0132.pdf

Shock horror, exactly what they were told would happen did happen (and continues to happen).

Every airline they've been talking to right now has said the exact same thing to them: "So if we do this, and easyJet then decide to increase their frequency, we're shit out of luck. Yeah, no thanks" 

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Perhaps it is relevant to remind people what Government were told in 2006 and what that intellectual colossus Tony Brown dismissed as an academic document .......

.......it is clear that a significant decrease in aircraft movements would occur with the introduction of larger aircraft relying on economies of scale. In fact EasyJet could only operate 5,835 movements per annum compared with the current level of 29,742 if it were to capture 100 percent of the airports passengers in 2007. To put the scenario into a more assimilative form, this equates to just 1 return flight a day to 8 destinations. Whilst this scenario is not realistic in terms of the likely composition of future services, one can conclude that current passenger volumes are insufficient to support a low cost carrier without cannibalising most if not all of the existing operators. Furthermore a significant reduction in choice for the consumer would occur, with much greater travel restrictions.

.............  Furthermore the report has already identified a likely reduction in the range of services in the short- term, which would offset any consumer benefit derived from cheaper fares, thereby reducing overall benefit to a minimum.

........... The master plans of the examined airports focused strongly on neighbouring airports, with the goal of developing a unique complementary role. Conversely Ronaldsway airport exhibit a somewhat competitive focus at the expense of tailoring services to match the local market. This attitude is typified by the suggestion that Jersey Airport has “stolen a march on the Isle of Man, by securing an Easyjet service to Liverpool” (ManxRadio, 2007) and is potentially damaging to a sustainable transport network from the island.

......... Indeed the proposal is in stark contrast with the DoT’s (2004) objective of developing “a more secure and sustainable plan” with the airport becoming “more reliant on transport providers who are based within the local economy, with services tailored towards the target audience”.

These observations whilst not directly aimed at the Flybe situation were very relevant at the time and still are, the drive to keep open skies and to attract larger aircraft was imo largely ego driven by the politicos and management in place at the time and not by any sensible business case which catered for the island nor indeed protected any operators. At the outset Tynwald were told this .......

passenger numbers will have to increase by 9.3% per annum leading up to 2010, 11.8% p.a. over the next period to 2015, and a further 2.4% p.a. increase thereafter to reach the 2.5 million target by 2030. The International Air Transport Association (2007) have warned of slowed air travel growth and estimate global passenger numbers to increase by 4.5% per year over the next 25 years. Therefore to achieve the published targets, the airport would not only have to meet, but exceed industry growth by nearly 300% in some periods. It is important to highlight that not only has the airport failed to achieve industry standard growth historically, but has actually seen negative growth in numbers over the past 2 years.

We need management without EGO and an ability to think outside the box, I don't think we have either of those qualities at present.

 

Edited by asitis
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11 hours ago, Albert Tatlock said:

Let's face it. They need to get the Manannin up and running asap.

Ma na ma na...Nuh nuh...nuh nuh nuh.

Ah, yes, the Muppet.

Even if she wasn't on the blocks in the dry dock at present, there's a bit of weather on the way again - no sooner would you get her back in the water than she'd be cancelled.

About time we got some proper ships, and an airline we can rely on.

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Ego problems are I think inherent in small administrations as the pool of expertise available is small and too many are promoted to beyond their level of competence at which time they tend to resent any outside comments that may indicate that they are out of their depth. One other problem with small-pool admins is that they self isolate thus allowing 'rogue operators' to profit from the situation.

Edited by Frances
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5 minutes ago, Derek Flint said:

Worth a listen.

perspective of two pilots on how the future might look

https://www.manxradio.com/news/isle-of-man-news/former-flybe-pilots-call-for-manx-owned-airline/

There is a case for some input, but for Government to be directly involved no thanks, it will be a disaster !

There really is a need for some out of the box thinking, we need strategic management not the bunch of losers we have now!

Edited by asitis
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With the Coronavirus situation there is currently much spare capacity in the aviation industry going a begging.  We must be able to get something, even to provide a lifeline service in the interim.

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Just now, Cypman said:

With the Coronavirus situation there is currently much spare capacity in the aviation industry going a begging.  We must be able to get something, even to provide a lifeline service in the interim.

Who ?

Qatar

Lufthansa

Edited by snowman
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Just now, snowman said:

Ex flybe, ex manx airlines pilots advocate protected propeller operators

 

Haha

 

 

 

 

If you got a  better idea then we're all ears. I don't think people realize what a huge effect this will have on the island.

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10 hours ago, snowman said:

According to a twitterer

 

Isle of Man flights to Birmingham, Liverpool and Manchester will resume from early next week. Likely airlines to operate the routes are Eastern Airways, easyJet and Loganair

I wonder how much HRH The Chief Minister has cost the island, if this is true?  Help and Assistance to set up or transfer their pension scheme funds to the island? A Landing Charge holiday? Sorry to sound so pessimistic and extremely cynical. I’m afraid Alfie Cannan isn’t much better ugh

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